A what is the amount of goodwill that joyful should record

Assignment Help Accounting Basics

Reference no: EM13481723

Joyful Sound Music Company purchased the net assets (i.e., assets minus liabilities) of Metrodome Company for $845,000. Metrodome is a retailer of music, instruments, and related items. Its net assets have been carried on its own books at a total of $530,000. An appraisal of all of Metrodome's assets and liabilities revealed a net fair market value of $783,000. Joyful is willing to pay extra because of Metrodome's very loyal retail customers, most of whom have dealt exclusively with the company for more than 30 years. (a) What is the amount of goodwill that Joyful should record at acquisition of Metrodome? (b) Whatmight cause the purchased goodwill in this situation to become impaired?

Reference no: EM13481723

Questions Cloud

The manufacturing division of an electronics company uses : the manufacturing division of an electronics company uses activity-based costing. the company has identified three

Materiality is a concept that can be applied quantitatively : materiality is a concept that can be applied quantitatively or qualitatively. in essene it is a concept used to ensure

Prepare a depreciation schedule for the asset showing : clary jensen farms purchased power equipment with an expected useful life of four years or 1000 hours of usage. the

Compute the cost of goods manufactured for the year ended : information for the year ended december 31 2010sales 110000direct materials used 20800indirect production costs-fixed

A what is the amount of goodwill that joyful should record : joyful sound music company purchased the net assets i.e. assets minus liabilities of metrodome company for 845000.

Prepare the stockholders equity section after the : on june 1 acme corporation declared and issued a 15 stockdividend to each of its 400000 outstanding shares of 2 par

What tentative conclusions can you draw about the debt : select one of the following companies southwest airlines delta airlines united airlines airtran continental

Ramirez corporation sells two types of computer chips the : ramirez corporation sells two types of computer chips. the sales mix is 30 q-chip and 70 q-chip plus. q-chip has

At the end of december the company found that it had : a company adds overhead costs to jobs at the rate of 8 per direct labor hour. it accumulates overhead costs in a

User Account

All Pages